Thanks a lot Mathieu! I wasn’t expecting such a high share from Mercosur countries, this is important given the trade deal between the two blocs…

Thanks a lot, that’s interesting. Out of curiosity, which countries does the EU import pesticides/forbidden pesticides from?

And more international trade economists that listed there Mastodon handle in their RePEc profile:

ideas.repec.org/i/eblueskyin...

Our finding: markup adjustments dampened the aggregate productivity cost of the 2012 Italian earthquake by ~30%.

This mechanism matters!

We do a lot more in the paper, feel free to check it out: drive.google.com/file/d/1uSi-...

What’s the overall effect of markup adjustments on the economy?

We calibrate an oligopolistic model to firm-level data: firms hit in the model are those hit in reality.

What’s the story?

NDs ⬆️ marginal costs, pushing firms to charge higher prices. But higher prices mean losing market shares - so firms cut markups to stay competitive.

How about agg. productivity? The effect of disasters depend on which firms are hit (more productive or not)!

Our finding? Larger firms hit by these shocks reduce their markups - and the drop is persistent!

We study one channel through which firms adjust: markups.

Using 15 years of micro data on Italy's manufacturing sector, we examine the impact of costly events like earthquakes & floods 🌊.

Economic activity spans many locations. So, if a flood hits 🚗 producers in a region, market shares might shift to unaffected producers in another one.

In short: location-specific shocks can reallocate activity, impact misallocation, and shape aggregate productivity!

You may want to take a look at these two papers: dc1cc4a6-c2d2-4473-9536-8625f57bb882.filesusr.com/ugd/858f86_6...
And www.aeaweb.org/articles?id=...
@yotoyotov.bsky.social will certainly know more about this topic!